Australian Broker Call

Ord Minnett rates ALL as Buy (1) -

Following FY22 results for Aristocrat Leisure, Ord Minnett increases its FY23 and FY24 earnings (EBITDA) forecasts by 1.4% and 1.5%, respectively, on better-than-expected Digital margins, offset by weaker A&NZ margins.

The broker highlights standout results for the America's installed base, which rose by 10% year-on-year.

The target falls to $40.50 from $41.00. Buy.

Ord Minnett forecasts digital margin expansion in FY23 and targeted cost control, particularly in user acquisition, will drive earnings growth.

Target price is $40.50 Current Price is $35.98 Difference: $4.52
If ALL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $41.47, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates ALL as Buy (1) -

Aristocrat Leisure's full year result was in line with UBS's expectations. The company reported net profit of $1,099m, with currency, and particularly US dollar strength, a strong tailwind for the company according to UBS.

Following its result release, Aristocrat Leisure has suffered a -5% share price decline, which the broker attributes to disappointment in bookings and profit from Pixel compared to recent years. Aristocrat Leisure has guided to net profit growth over the coming year, and the broker forecasts 12% growth. 

The Buy rating is retained and the target price decreases to $41.60 from $44.80.

Target price is $41.60 Current Price is $35.98 Difference: $5.62
If ALL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $41.47, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates ALU as Accumulate (2) -

Ord Minnett cites a raft of positives for Altium that lead to a target price of $40, up from $34.

While a trading update at the company's AGM only reaffirmed FY23 guidance, the analyst assesses strong progress in the first four months of FY23, including strong adoption of the cloud-based platform. Average revenue per user also increased.

After also assessing other independent data, the broker increases forecasts due to ARPU expansion and a positive outlook for printed circuit board software design and component demand. The target price rise also reflects recent currency movements.

The Accumulate rating is unchanged.

Target price is $40.00 Current Price is $36.51 Difference: $3.49
If ALU meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $35.45, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates AMP as Sell (5) -

The successful divestment of AMP's insurance and funds management operations leaves it a more simplified company and provides for a strong balance sheet, according to UBS. 

Despite this, the broker remains concerned by the medium-term outlook, with AMP continuing to face volume and margin challenges across banking and wealth management.

The Sell rating is retained and the target price increases to $1.00 from $0.95.

Target price is $1.00 Current Price is $1.26 Difference: minus $0.265 (current price is over target).
If AMP meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.10, suggesting downside of -13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates ASX as Neutral (3) -

ASX will review the CHESS replacement project and current activities are on hold following a review which identified challenges in the solution design. Credit Suisse considers the write off of associated capital software a significant item. 

The write down of the value of associated software will result in a -$245-255m negative charge for ASX, and the company's full year capital expenditure is now expected to be $100-110m. 

The Neutral rating is retained and the target price decreases to $74.00 from $75.00.

Target price is $74.00 Current Price is $71.13 Difference: $2.87
If ASX meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $77.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates ASX as Outperform (1) -

Following an independent report, ASX has decided to dump its blockchain aspirations for CHESS, and write off -$245-255m of wasted investment. So back to the drawing board.

Macquarie finds the write-down disappointing, implying ongoing uncertainty in the CHESS replacement timeline, but the impact is not material to ASX’s underlying earnings which are considered very defensive against a weakening macro backdrop.

Dividends will not be impacted. Outperform retained, target falls to $83 from $90.

Target price is $83.00 Current Price is $71.13 Difference: $11.87
If ASX meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $77.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates ASX as Equal-weight (3) -

Morgan Stanley feels the ASX's abandonment of the blockchain CHESS replacement project creates strategic uncertainty and could also lead to more competition in the Australian market.

The company will write-off the entire capitalised software balance for the project of between -$245-255m pre-tax (-$172-179m post tax) in the 1H of FY23.

Management left FY23 opex growth guidance unchanged at 10-12%, while FY23 capex guidance was reduced by -$15m to $100-110m as the CHESS replacement team is reduced.

The Equal-weight rating and target price of $80.20 are retained. Industry view: In-Line.

Target price is $80.20 Current Price is $71.13 Difference: $9.07
If ASX meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $77.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates ASX as Hold (3) -

Morgans points out the ASX will now have to start from scratch in trying to find a replacement for the 25 year old CHESS technology, having halted work on the blockchain project.

As a result, a -$172m-$179m (post tax) significant item will be recognised in the 1H FY23 result, explains the analyst.

Separately, the broker lowers its FY23-25 EPS forecasts marginally to reflect a weaker capital markets environment. The target falls to $75.60 from $76.90. Hold.

Target price is $75.60 Current Price is $71.13 Difference: $4.47
If ASX meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $77.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates ASX as Hold (3) -

Ord Minnett downgrades FY23 and FY24 earnings forecasts for ASX by -1% and reduces its target to $75 from $80. These changes follow the abandonment of the CHESS replacement project, and the potential for higher capex from starting again.

The analyst mentions there may also be additional regulatory imposts to ensure problem-free delivery.

Apart from these problems, the broker points out recent market volumes remain weak. The Hold rating is kept due to the defensive nature of earnings and the recent fall in share price.

Target price is $75.00 Current Price is $71.13 Difference: $3.87
If ASX meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $77.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates ASX as Sell (5) -

ASX has announced a reassessment of the CHESS replacement project, as well as a write-off of associated capital expenditure. While the announcement has not come as huge surprise to UBS, the broker sees the news as adding to the company's existing challenges. 

Associated capitalised software costs of -$245-255m will be written off in the first half of FY23. Coupled with soft core market activity, elevated cost inflation, staffing changes, regulatory scrutiny and potential new competition, the broker considers risk skewed to the downside at this time. 

The Sell rating is retained and the target price decreases to $68.00 from $73.00.

Target price is $68.00 Current Price is $71.13 Difference: minus $3.13 (current price is over target).
If ASX meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $77.03, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates CHC as Buy (1) -

Ord Minnett's highlight from the 1Q trading update by Charter Hall was very strong 9.9% growth in property assets under management (AUM), the bulk of which came from the wholesale platform. This growth is in line with the analyst's FY23 target.

Management reiterated FY23 operating EPS guidance of no less than 90cpu and DPS growth of 6%.

The broker's Buy rating is unchanged, while the target falls to $15.50 from $16.50.

Target price is $15.50 Current Price is $13.50 Difference: $2
If CHC meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.67, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates DTL as Overweight (1) -

Greater clarity on Data#3's high-margin opportunity in managed services, provided at the company's investor day, prompts Morgan Stanley to raise its target to $7.30 from $6.90. EPS forecasts for FY23-25 are conservatively raised by 1%.

The broker also now has greater conviction on medium-term growth prospects, as management noted the strength and resilience of IT spending, and the company's ability to secure share across the lifecycle of the customer.

Morgan Stanley retains its Overweight rating. Industry view is In-Line.

Target price is $7.30 Current Price is $6.71 Difference: $0.59
If DTL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.07, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates EHL as Outperform (1) -

Emeco Holdings' AGM highlighted demand for rental & maintenance services remains strong, Macquarie notes, with equipment placed in high quality projects positioned for growth through 2023.

The east nevertheless continues to be impacted by wet weather and in the west, Pit N Portal contract terminations are impacting but management is confident the fleet will be deployed into new projects in the second half and provide earnings and margin growth.

Despite the weather and Pit N Portal drags, Macquarie believes demand should underpin growth. Valuation is undemanding and the dividend and buyback should provide support. Outperform retained, target falls to $1.15 from $1.20.

Target price is $1.15 Current Price is $0.73 Difference: $0.42
If EHL meets the Macquarie target it will return approximately 58% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates GNC as Upgrade to Buy from Neutral (1) -

GrainCorp delivered, as expected, a strong full year result according to UBS, supported by a bumper crop and high supply chain margins.

The broker warns FY22 likely represents an earnings peak, but likes the strong visibility into FY24 and upside risk potential from favourable weather and macro conditions. 

Recent flooding has delayed winter harvests, and could impact on final crop size, but UBS suggests this is more likely to limit potential upside rather than create downside. 

The rating is upgraded to Buy from Neutral and the target price increases to $8.65 from $8.60.

Target price is $8.65 Current Price is $7.83 Difference: $0.82
If GNC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $9.59, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates HUB as Initiation of coverage with Buy (1) -

UBS initiates coverage on Hub24. The broker finds Hub24 one of the fastest growing specialist platforms, benefiting from strong flow momentum, scale benefits and rising profit margins, and has a simple and focused business model in comparison to larger peers.

The broker anticipates a depressed period for flows across the industry, but expects Hub24 will remain an outperformer and likely deliver results ahead of consensus expectations. UBS estimates Hub24 will double its share of funds under administration by FY25.

The broker initiates coverage with a Buy rating and a target price of $31.00.

Target price is $31.00 Current Price is $26.73 Difference: $4.27
If HUB meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $30.74, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates IFL as Initiation of coverage with Neutral (3) -

UBS reinitiates coverage on Insignia Financial. The broker considers Insignia Financial to have been on the forefront of sector consolidation over the last decade, but as a result the company has a complex system of overlapping platforms, products and systems open to material efficiency opportunities. 

The broker believes Insignia Financial faces organic growth challenges which have been compensated for through several large acquisitions, but organic net platform flows have remained negative over the last three years. 

Opportunity exists to streamline platforms and operations to drive cost efficiencies. The broker reinitiates with a Neutral rating and a target price of $3.40.

Target price is $3.40 Current Price is $3.38 Difference: $0.02
If IFL meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates IFM as Buy (1) -

UBS has taken the view new management is working on a new strategy and this will involve reinvesting into the business in order to secure future growth.

The broker is on board with the approach, but acknowledges this means a lower reset in the short term. Also, the AGM address equally revealed Infomedia is fighting operational headwinds.

Sticking with a positive undertone, UBS begrudgingly lowers forecasts but continues to see upside surprise potential, while also making it clear it retains a positive view over the medium term.

Buy. Target tumbles to $1.60 from $1.95.

Target price is $1.60 Current Price is $1.17 Difference: $0.435
If IFM meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates IPH as Outperform (1) -

IPH's FY23 year-to-date earnings are ahead of last year and in line with Macquarie's forecasts, the AGM revealed. Asia is driving performance, with revenues and earnings up year on year.

Year to date performance has validated the company’s ongoing growth profile, the broker suggests, and the relatively defensive nature of the services it provides. Macquarie will continue to monitor progress in integrating Smart & Biggar and realising synergies.

The balance sheet is positioned for further investment in growth. Outperform retained, target rises to $12.40 from $11.95.

Target price is $12.40 Current Price is $9.19 Difference: $3.21
If IPH meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $11.34, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates IPH as Buy (1) -

UBS was unsurprised by updates from IPH's annual general. Like-for-like earnings over the first four months declined on the previous year, but remain consistent with the broker's expectations for the first half. 

While momentum in Asia remained strong, performance in Australia & New Zealand was slightly softer than expected. According to UBS this was not unexpected, as the regiong cycles challening filing volumes in the previous comparable period. 

The Buy rating and target price of $11.00 are retained.

Target price is $11.00 Current Price is $9.19 Difference: $1.81
If IPH meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $11.34, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates MIN as Outperform (1) -

Mineral Resources is pursuing a multi-pronged expansion strategy in the near term, Macquarie notes, including innovative solutions for mining services and growth in iron ore, lithium, and energy.

The company’s five-year outlook highlights material volume growth, which presents upside to the broker's base case. Mineral Resources remains Macquarie's preferred company in the broader resource sector.

Buoyant lithium prices present earnings upside in the near term, while its organic growth offers valuation upside in the medium to longer term, in the broker's view. Outperform and $125 target retained.

Target price is $125.00 Current Price is $82.95 Difference: $42.05
If MIN meets the Macquarie target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $89.64, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates NWL as Initiation of coverage with Buy (1) -

UBS reinitiates coverage on Netwealth Group, describing the company as having a clean organic growth story devoid of the IT integration distractions impacting across the industry.

Despite a strong growth history, penetration remains low but new product launches should boost the growth outlook.The broker expects specialist platforms to continue to dominate industry flows, supported by a regulatory tailwind. 

The broker reinitiates with a Buy rating and target price of $17.00.

Target price is $17.00 Current Price is $13.91 Difference: $3.09
If NWL meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $15.12, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates PDL as Neutral (3) -

Credit Suisse expects the Perpetual ((PPT)) and Pendal Group merger is likely to complete following a ruling from the New South Wales Supreme Court that Perpetual could be liable for further remedies beyond the -$23m break fee if the company does not proceed, making it difficult to pursue alternatives.

Updated merger financials will see the deal close for $1.65 cash and one Perpetual share for every seven Pendal Group shares, increased scrip 5%. The target price for Pendal Group increases, reflecting the reduced completion risk. 

The Neutral rating is retained and the target price increases to $5.40 from $4.80.

Target price is $5.40 Current Price is $4.93 Difference: $0.47
If PDL meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.91, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates PGH as Hold (3) -

As part of a 1Q trading update at its AGM, Pact Group provided 1H guidance which was softer than Ord Minnett had anticipated. Also management still anticipates "slight EBIT growth" for FY23, which the broker sees as unlikely.

The analyst points out that for FY23 guidance to be achieved, the group requires a half year earnings result only experienced in three of the past ten half yearly periods.

Apart from cutting FY23-25 EPS estimates by -12-15%, Ord Minnett marks-to-market market multiples and increases its assumed risk-free rate. The end result: the target price falls to $1.30 from $2.20. The Hold rating is unchanged.

Target price is $1.30 Current Price is $1.15 Difference: $0.155
If PGH meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.23, suggesting upside of 93.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates PPT as Downgrade to Neutral from Outperform (3) -

Credit Suisse expects the Perpetual and Pendal Group ((PDL)) merger is likely to complete following a ruling from the New South Wales Supreme Court that Perpetual could be liable for further remedies beyond the -$23m break fee if the company does not proceed, making it difficult to pursue alternatives.

Updated merger financials will see the deal close for $1.65 cash and one Perpetual share for every seven Pendal Group shares, increased scrip 5%. The reduced target price reflects the broker's sum of the parts valuation for the merged entity. 

The rating is downgraded to Neutral from Outperform and the target price decreases to $27.50 from $29.00.

Target price is $27.50 Current Price is $27.59 Difference: minus $0.09 (current price is over target).
If PPT meets the Credit Suisse target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.60, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates PPT as Overweight (1) -

In striving to acquire Pendal Group ((PDL)), Perpetual has increased the scrip component to 1 Perpetual share for every 7 Pendal shares from 1:7.5, and reduced the cash component to $1.65/share from $1.976/share.

The company also reduced by -3.5c the DPS payable on 15 December.

These changes lower the broker's forecast transaction accretion by -2-3% to mid-single digit accretion.

The Overweight rating and $29.80 target are unchanged. Industry view: Attractive.

Target price is $29.80 Current Price is $27.59 Difference: $2.21
If PPT meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $28.60, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates PSQ as Overweight (1) -

Morgan Stanley sees scope for a meaningful re-rate of Pacific Smiles shares on continued execution following a strong trading update to November 15 and reiteration of FY23 guidance (which had previously been in doubt).

Management noted improved trading year-to-date and the broker now expects 50% of the low-end of FY23 guidance to be achieved in the 1H. Rollout and margin targets to 2027 were also considered to be in line with expectations.

Overweight and $2.30 target retained. Industry view: In-Line.

Target price is $2.30 Current Price is $1.55 Difference: $0.75
If PSQ meets the Morgan Stanley target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates RRL as Upgrade to Neutral from Sell (3) -

While further approvals are still outstanding (and a final feasability study) for Regis Resources' McPhillamys project, Citi recognises the importance of a DPE approval by raising its rating to Neutral from Sell.

DPE stands for the NSW Department of Planning & Environment.

The target is increased to $1.85 from $1.50 after the analyst reduces the risk weighting on the project.

Target price is $1.85 Current Price is $1.84 Difference: $0.015
If RRL meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates SEK as Outperform (1) -

While Seek has reaffirmed full year revenue guidance of $1.25-1.30m, earnings guidance of $560-590m and net profit guidance of $250-270m, Credit Suisse makes note of improved earnings quality for the fiscal year.

Moderating volumes are being offset by yield improvement driven by dynamic pricing and lower volume discounts, and better revenues from Seek Asia as a result of improving depth.

The broker updates its full year earnings forecast to $566.5m, now within company guidance. The Outperform rating and target price of $35.10 are retained.

Target price is $35.10 Current Price is $21.41 Difference: $13.69
If SEK meets the Credit Suisse target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $29.88, suggesting upside of 37.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates SEK as Buy (1) -

UBS finds Seek's guidance reiteration a positive in the face of market concern around slowing macro activity, and sees it as suggesting an expected yield uplift from the company. 

Despite an expected listing volume decline, the broker expects dynamic pricing to drive yield growth, and optimism around Seek's ability to drive yield growth over the medium term underpins UBS's rating.

The broker estimates classic ad pricing has lifted 9% year-on-year between July and November. The Buy rating and target price of $27.80 are retained.

Target price is $27.80 Current Price is $21.41 Difference: $6.39
If SEK meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $29.88, suggesting upside of 37.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates SHL as Neutral (3) -

Citi expects the market to look through a covid-impacted 1H for Sonic Healthcare, as implied by a trading update for the first four months of the financial year. The main focus is expected to be on the base business recovery and the impact of inflation on post-covid margins.

Management still expects “significant ongoing covid testing revenue”.

The analyst assumes earnings (EBIT) margins return to pre-covid levels in FY25.

The target falls to $34.00 from $34.50 on changes to the broker's assumptions for margins and currency. Neutral.

Target price is $34.00 Current Price is $32.29 Difference: $1.71
If SHL meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $35.20, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates SHL as Underperform (5) -

Covid testing was always expected to ease for Sonic Healthcare but yesterday's trading update indicated the drop-off is more rapid than Macquarie had forecast. At the same time, there remains the risk of cost inflation.

Macquarie's earnings forecasts are below consensus and a sum-of-the-parts valuation highlights downside risk at current levels, the broker notes.

Underperform retained, target falls to $31.30 from $31.50.

Target price is $31.30 Current Price is $32.29 Difference: minus $0.99 (current price is over target).
If SHL meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.20, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates SHL as Overweight (1) -

Revenue was in line with Morgan Stanley's forecast though the earnings (EBITDA) margin was a miss, in a trading update supplied by Sonic Healthcare for the four months to October 22.

Management expects the base business to accelerate and still expects ongoing covid testing will be significant.

The $38.60 target and Overweight rating are unchanged. Industry view: In-Line.

Target price is $38.60 Current Price is $32.29 Difference: $6.31
If SHL meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $35.20, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates SHL as Hold (3) -

October covid testing rates for Sonic Healthcare, as revealed in a trading update at its AGM, imply annualised testing of $750m, well short of Morgans $1.1bn estimate.

While a reduction in testing was expected, the size of the reduction was a surprise and the broker lowers covid testing assumptions, resulting in a $34.77 target, down from $37.57. Hold.

Target price is $34.77 Current Price is $32.29 Difference: $2.48
If SHL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $35.20, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates SVW as Outperform (1) -

Seven Group's AGM highlighted WesTrac demand is expected to remain strong for mining products and services, and Coates customer activity remains solid due to a robust industry environment, Macquarie notes.

Reducing the debt attained to finance the Boral acquisition is a priority, but over $3bn has since been repaid and the transaction bid financing has been retired.

Outperform retained, target rises to $25.05 from $24.25.

Target price is $25.05 Current Price is $19.55 Difference: $5.5
If SVW meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $23.68, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates SVW as Buy (1) -

Seven Group has provided initial guidance for WesTrac and Coates, anticipating low teen earnings growth over the coming year. 

UBS expects demand to remain strong, with Coates leveraged to high infrastructure investment expected through to 2025 and WesTrac's mining products and services expected to stay in demand over the next decade. 

Despite the positive growth outlook for these assets, UBS considers more consistent operating outcomes at Seven Group key to the stock's investment case. 

The Buy rating and target price of $25.40 are retained.

Target price is $25.40 Current Price is $19.55 Difference: $5.85
If SVW meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $23.68, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates TLS as Buy (1) -

Ord Minnett anticipates earnings upgrades for Telstra Group from several unexpected positive catalysts, including a pick up in international travel while a weaker Australian dollar provides a boost for Digicel.

The broker also highlights the upside from the Optus data breach, which could add up to 160,000 more postpaid subscribers to Telstra than prior forecasts.

The target rises to $4.70. Buy.

Target price is $4.70 Current Price is $3.84 Difference: $0.86
If TLS meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates WEB as Buy (1) -

Citi assesses a strong 1H result for Webjet, with earnings (EBITDA) a 25% beat versus the consensus forecast, with outperformance by both B2B and B2C segments. Growth in bookings and margin strength drove the result.

Despite cost of living pressures, the analyst sees no impact as yet on either hotel pricing or travel volumes.

The broker increases its FY23 earnings estimate by 5% though notes higher D&A expenses impact profitability. Conservatively, FY24/25 earnings estimates are reduced by -5-8%.

Trumping the net effect of the above changes, Citi ascribes a higher multiple to the B2B segment and the target rises to $7.20 from $6.48. Buy.

Target price is $7.20 Current Price is $6.19 Difference: $1.01
If WEB meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates WEB as Outperform (1) -

Market share gains made by Webjet's WebBeds are becoming evident, according to Credit Suisse. The broker suggests WebBeds and other large players have been taking share from smaller players, with an organic growth story becoming increasingly evident. 

The broker expects the anticipated slow down in travel could benefit WebBeds, with hoteliers expected to increasingly allocate volume to bed banks as direct consumer bookings decline.  

The Outperform rating is retained and the target price increases to $7.30 from $6.60.

Target price is $7.30 Current Price is $6.19 Difference: $1.11
If WEB meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates WEB as Equal-weight (3) -

Morgan Stanley remains Equal-weight rated on Webjet following in-line 1H results. Earnings (EBITDA) of $72.5m were a -28% miss versus expectation and included the impact of higher-than-expected corporate costs.

Total transaction value (TTV) of $2.14bn compared to the broker's $2.11bn estimate. Highlights included a 6% beat in earnings for WebBeds compared to the analyst's forecast.

The $6.00 target price is unchanged. Industry View: In-line.

Target price is $6.00 Current Price is $6.19 Difference: minus $0.19 (current price is over target).
If WEB meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.91, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates WEB as Add (1) -

Webjet is leading the recovery of travel stocks under Morgans coverage, with a 1H result beat featuring operating cashflows materially stronger than expected.

Bookings were back to pre-covid levels, total transaction volume (TTV) was at 90%, while the cost base was -16% lower, resulting in a group earnings (EBITDA) margin of 41.3%, explains the analyst.

WebBeds led the recovery, observes the broker, with bookings currently up over 30% versus pre-covid levels and management expects to exceed pre-covid earnings (EBITDA) in FY23.

The target rises to $7.20 from $6.40. Add.

Target price is $7.20 Current Price is $6.19 Difference: $1.01
If WEB meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates WEB as Buy (1) -

Ord Minnett maintains its Buy rating and increases its target for Webjet to $7.41 from $7.34 following the release of 1H results.

The broker now feels evidence has been provided on the emergence of the B2B division as a structural winner from the pandemic. Free cash flow exceeded expectations, largely driven by strong growth for that division. The B2C division result was also considered solid.

The analyst expects more growth as Outbound capacity becomes less constrained and sees a significant growth runway in the coming years.

Even if the economic outlook worsens, Ord Minnett feels the investment thesis will be unchanged given the potential for market share gains and pent-up demand for Leisure travel.

Target price is $7.41 Current Price is $6.19 Difference: $1.22
If WEB meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates WEB as Buy (1) -

UBS had already concluded H1 marked a very strong, better-than-forecast performance from Webjet (see yesterday's Report). On second consideration, the analysts have sligthly lowered forecasts by -1-3%, but highlight upside risk.

The broker states confidence in the travel agent's growth outlook has grown (pardon the punt). Buy. Target price lifts to $7.10 from $6.50.

Target price is $7.10 Current Price is $6.19 Difference: $0.91
If WEB meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources